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Net income decreased in fiscal year 2008 primarily due to a 65% decline in other income, net. Thedecrease in other income, net reflects a 38% decrease in investment and other income, net primarily due tolower realized gains on sale of investment securities, a decline in income from our investments in equitymethod investees, and lower interest and dividend income. Also contributing to the decrease in otherincome, net were net losses recognized by our consolidated sponsored investment products in fiscal year2008, as compared to net gains in the prior fiscal year. The decrease in other income, net was partially offsetby a 3% increase in investment management fees.Diluted earnings per share decreased in fiscal years 2009 and 2008, consistent with the decreases in netincome, partially offset by 3% and 5% decreases in diluted average common shares outstanding primarilyresulting from the repurchase of shares of our common stock.Assets Under ManagementAssets under management by investment objective were as follows:(dollar amounts in billions)as of September 30, 2009 2008 20072009vs. 20082008vs. 2007EquityGlobal/international .............................. $183.1 $190.3 $286.7 (4)% (34)%Domestic (U.S.) ................................. 63.9 72.9 100.5 (12)% (27)%Total equity .................................... 247.0 263.2 387.2 (6)% (32)%Hybrid ............................................ 98.2 93.9 117.2 5% (20)%Fixed-IncomeTax-free ....................................... 69.6 59.7 59.0 17% 1%TaxableGlobal/international .......................... 63.3 52.7 44.3 20% 19%Domestic (U.S.) ............................. 38.4 30.5 31.8 26% (4)%Total fixed-income ............................... 171.3 142.9 135.1 20% 6%Cash Management 1 ................................. 6.9 7.3 6.4 (5)% 14%Total ......................................... $523.4 $507.3 $645.9 3% (21)%Simple Monthly Average for the Year 2 ................. $442.2 $604.9 $582.0 (27)% 4%1 Includes both U.S.-registered money market funds and Non-U.S. Funds with similar investment objectives.2 Investment management fees from approximately 53% of our assets under management at September 30, 2009 werecalculated using daily average assets under management.Our assets under management at September 30, 2009 were 3% higher than they were at September 30,2008 primarily due to market appreciation of $25.4 billion during fiscal year 2009, as compared to marketdepreciation of $123.4 billion during fiscal year 2008. The appreciation during fiscal year 2009 relatedprimarily to fixed-income products, while the depreciation in fiscal year 2008 occurred predominantly inequity products as market volatility led to significant valuation decreases and a shift in investor demand tolower risk investments. The depreciation and net outflows persisted throughout the first half of fiscal year2009 before the market recovery began in the second half, resulting in a 27% decrease in simple monthlyaverage assets under management during the year. The simple monthly average is generally more indicativeof trends in revenue for providing investment management and fund administration services than the yearover year change in ending assets under management.40